In a constantly changing world, innovation is an essential driver for social and economic development. However, some innovative ideas struggle to find the funding needed to come to fruition. This is particularly the case in Africa, where many projects with a strong social impact struggle to attract the attention of traditional investors.
It is in this context that the Innovation Fund for Development (FID) was created in 2020, with the objective of supporting projects with strong social impact, which do not correspond to traditional financing criteria. Chaired by the Nobel Prize winner in economics Esther Duflo, the FID recently saw its allocation renewed and increased, from 15 to 25 million euros per year.
The objective of the FID is to enable new actors such as NGOs, universities, governments and laboratories to propose social innovations. Unlike profit-driven innovation, FID emphasizes the creation of social value. This means that projects supported by the FID are not evaluated based on their profitability, but on their positive impact on people’s lives.
And this is where FID stands out. He considers that the failure of a project is not an end in itself, but rather an opportunity to learn and move forward. Indeed, the evaluation of projects financed by the FID is based on their ability to make a real difference in people’s lives. This helps determine whether the project should be developed on a larger scale or move on to something else.
Since its creation, the FID has already supported 66 projects, 90% of which are located in Africa. This demonstrates the FID’s desire to fill the funding gap for social innovation on the continent. Various projects, such as the fight against lead poisoning in Ivory Coast or the mental health of young people in Kenya, have already benefited from FID support.
In summary, the Development Innovation Fund is a valuable instrument for stimulating social innovation in Africa. By offering accessible financing to projects with a strong social impact, the FID makes it possible to make a real difference in people’s lives. Thanks to this innovative approach, many actors in the field finally have the opportunity to realize their ideas and contribute to the sustainable development of Africa.